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Segments of Business | 3 Months Ended
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Jun. 30, 2026
Segment Reporting [Abstract] |
Segments of Business | Segments of Business Commencing in the second quarter of fiscal 2026, the Company implemented a new segment reporting structure which resulted in four reportable segments: North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions, and M edical-Surgical Solutions. The Company’s former Norwegian operations were included in Other. All prior segment information has been recast to reflect the Company’s new segment structure and current period presentation. The organizational structure also includes Corporate, which consists of income and expenses associated with administrative functions and projects, and the results of certain investments. These segment changes reflect how the Company’s Chief Executive Officer, who is the chief operating decision maker (“CODM”), allocates resources and assesses performance. The factors for determining the reportable segments include the manner in which management evaluates the performance of the Company combined with the nature of the individual business activities. The Company evaluates the performance of its reportable segments on a number of measures, including revenues and operating profit before interest expense and income taxes. The CODM uses operating profit before interest expense and income taxes to assess performance and allocate resources for each reportable segment during the Company’s annual long-term planning process and through quarterly operating reviews focused on each segment’s results compared to the budget and rolling forecast. The CODM is regularly provided with budgeted or forecasted expense information for the segment and also uses consolidated expense information. Assets by segment are not a measure used to assess the performance of the Company by the CODM and thus are not reported in the Company’s disclosures. The North American Pharmaceutical segment provides distribution and logistics services for branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs along with other healthcare-related products to customers in the U.S. and Canada. In addition, the segment sells financial, operational, and clinical solutions to pharmacies (retail, hospital, alternate sites) and provides consulting, outsourcing, technological, and other services. The Oncology & Multispecialty segment includes provider solutions that encompass specialty drug distribution, group purchasing organizations, infusion services, direct to patient pharmacy capabilities, cell and gene therapy services with InspiroGene, technology solutions, practice consulting services, and vaccine distribution. In addition, the segment supports The U.S. Oncology Network, one of the largest networks of physician-led, integrated, community-based oncology practices dedicated to advancing high-quality, evidence-based cancer care in the U.S. The segment also includes PRISM Vision, which drives patient outcomes in a retina and ophthalmology setting. Combined with Sarah Cannon Research Institute and the technology business, Ontada, this segment provides research, insights, technologies, and services that address and improve cancer and specialty care. The Prescription Technology Solutions segment helps solve medication access, affordability, and adherence challenges for patients by working across healthcare to connect patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies. Prescription Technology Solutions serves the Company’s biopharma and life sciences partners, delivering innovative solutions that help people get the medicine they need to live healthier lives. This segment offers technology services, which includes electronic prior authorization, prescription price transparency, benefit insight, dispensing support services, and patient enrollment, in addition to third-party logistics and wholesale distribution support designed to benefit stakeholders. The Medical-Surgical Solutions segment is a leading provider of medical-surgical supplies, laboratory equipment and pharmaceutical distribution, logistics, and other services to non-acute settings in the U.S. These include healthcare providers operating in ambulatory care environments, such as physician offices, surgery centers, and hospital reference labs, as well as extended care settings, including nursing homes, hospice and home health care agencies, government facilities and online marketplaces and retailers. This segment offers national brand medical-surgical products as well as its own line of more than 4,000 high-quality products through a network of distribution centers in the U.S. During fiscal 2026, the Company announced its intention to separate this segment into an independent company. As a part of the separation strategy, on June 1, 2026, the Company completed a transaction under which funds managed by affiliates of Apollo Funds acquired an approximately 13% minority ownership interest in the Company’s Medical‑Surgical Solutions business through an investment of approximately $1.25 billion in the business’s convertible preferred equity. The Company recognized a redeemable noncontrolling interest associated with the divested portion of the Medical‑Surgical Solutions segment. McKesson retains operating control and majority ownership of Medical-Surgical Solutions and continues to consolidate this segment into its consolidated financial statements. The Company’s former Norwegian operations, which provided distribution and services to wholesale and retail customers in Norway where it owned, partnered, or franchised with retail pharmacies, were included in Other. During fiscal 2026, the Company completed the sale of the Norway disposal group. Refer to Financial Note 2, “Business Acquisitions and Divestitures,” for more information. Financial information relating to the Company’s reportable segments and reconciliations to the consolidated totals was as follows:
| Three Months Ended June 30, |  |
(In millions) | 2026 |  | 2025 |  |  |  |
Segment revenues (1) |  |  |  |  |  |  |
North American Pharmaceutical | $ | 86,773 |  |  | $ | 82,729 |  |  |  |  |
Oncology & Multispecialty | 14,222 |  |  | 10,658 |  |  |  |  |
Prescription Technology Solutions | 1,566 |  |  | 1,434 |  |  |  |  |
Medical-Surgical Solutions | 2,819 |  |  | 2,701 |  |  |  |  |
Other | — |  |  | 305 |  |  |  |  |
Total revenues | $ | 105,380 |  |  | $ | 97,827 |  |  |  |  |
Other segment expense, net (2) |  |  |  |  |  |  |
North American Pharmaceutical (3) | $ | 85,870 |  |  | $ | 82,135 |  |  |  |  |
Oncology & Multispecialty | 13,897 |  |  | 10,446 |  |  |  |  |
Prescription Technology Solutions (4) | 1,340 |  |  | 1,181 |  |  |  |  |
Medical-Surgical Solutions (5) | 2,697 |  |  | 2,480 |  |  |  |  |
Other | — |  |  | 292 |  |  |  |  |
Total other segment expense, net | $ | 103,804 |  |  | $ | 96,534 |  |  |  |  |
Segment operating profit |  |  |  |  |  |  |
North American Pharmaceutical | $ | 903 |  |  | $ | 594 |  |  |  |  |
Oncology & Multispecialty | 325 |  |  | 212 |  |  |  |  |
Prescription Technology Solutions | 226 |  |  | 253 |  |  |  |  |
Medical-Surgical Solutions | 122 |  |  | 221 |  |  |  |  |
Other | — |  |  | 13 |  |  |  |  |
Subtotal | 1,576 |  |  | 1,293 |  |  |  |  |
Corporate expenses, net (6) | (191) |  |  | (193) |  |  |  |  |
Interest expense | (77) |  |  | (49) |  |  |  |  |
Income before income taxes | $ | 1,308 |  |  | $ | 1,051 |  |  |  |  |
Segment depreciation and amortization (7) |  |  |  |  |  |  |
North American Pharmaceutical | $ | 39 |  |  | $ | 32 |  |  |  |  |
Oncology & Multispecialty | 66 |  |  | 42 |  |  |  |  |
Prescription Technology Solutions | 19 |  |  | 21 |  |  |  |  |
Medical-Surgical Solutions | 26 |  |  | 22 |  |  |  |  |
Other | — |  |  | 3 |  |  |  |  |
Corporate | 45 |  |  | 37 |  |  |  |  |
Total segment depreciation and amortization | $ | 195 |  |  | $ | 157 |  |  |  |  |
Segment expenditures for long-lived assets (8) |  |  |  |  |  |  |
North American Pharmaceutical | $ | 64 |  |  | $ | 61 |  |  |  |  |
Oncology & Multispecialty | 18 |  |  | 24 |  |  |  |  |
Prescription Technology Solutions | — |  |  | 1 |  |  |  |  |
Medical-Surgical Solutions | 27 |  |  | 25 |  |  |  |  |
Other | — |  |  | 1 |  |  |  |  |
Corporate | 43 |  |  | 77 |  |  |  |  |
Total segment expenditures for long-lived assets | $ | 152 |  |  | $ | 189 |  |  |  |  |
(1)Revenues from services on a disaggregated basis represent less than 1% of the North American Pharmaceutical segment’s total revenues, approximately 7% of the Oncology & Multispecialty segment’s total revenues, approximately 39% of the Prescription Technology Solutions segment’s total revenues, and less than 1% of the Medical-Surgical Solutions segment’s total revenues. The Company’s Norwegian operations were included in Other. (2)Other segment expense, net includes cost of sales, total operating expenses, as well as other income, net, for the Company’s reportable segments. (3)The Company’s North American Pharmaceutical other segment expense, net includes the following: •related to the bankruptcy of the Company’s customer Rite Aid Corporation (including certain of its subsidiaries, “Rite Aid”), the Company recorded a provision for bad debts of $189 million during the three months ended June 30, 2025. This was recorded within “Selling, distribution, general, and administrative expenses” in the Company’s Condensed Consolidated Statements of Operations. (4)The Company’s Prescription Technology Solutions other segment expense, net includes the following: •restructuring charges of $61 million for the three months ended June 30, 2026 for restructuring initiatives as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net.” (5)The Company’s Medical-Surgical Solutions other segment expense, net includes the following: •charges of $45 million for the three months ended June 30, 2026 related to the planned separation of the Medical-Surgical Solutions business. (6)Corporate expenses, net include the following: •restructuring charges of $50 million and $29 million for the three months ended June 30, 2026 and 2025, respectively, for restructuring initiatives as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net;” •a credit of $34 million for the three months ended June 30, 2026 related to the estimated liability for opioid related claims, as discussed in Financial Note 11, “Commitments and Contingent Liabilities;” and •charges of $23 million for the three months ended June 30, 2026 related to the planned separation of the Medical-Surgical Solutions business. (7)Amounts primarily consist of amortization of acquired intangible assets purchased in connection with business acquisitions and capitalized software for internal use as well as depreciation and amortization of property, plant, and equipment, net. (8)Long-lived assets consist of property, plant, and equipment, net and capitalized software. Long-lived assets by geographic areas were as follows:
(In millions) | June 30, 2026 |  | March 31, 2026
Long-lived assets |  |  |
United States | $ | 3,185 |  |  | $ | 3,177 |
Foreign | 244 |  |  | 255 |
Total long-lived assets | $ | 3,429 |  |  | $ | 3,432 |

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